Expect the value of your dividend check to be three years

Assignment Help Financial Management

Reference no: EM13850065

Star Light & Power increases its dividend 4.1 percent per year every year. This utility is valued using a discount rate of 12 percent, and the stock currently sells for $41 per share. If you buy a share of stock today and hold on to it for at least three years, what do you expect the value of your dividend check to be three years from today? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Dividend $

Reference no: EM13850065

Questions Cloud

What is just war therory and what is its primary purpose : What is just war therory and what is its primary purpose. Choose one woare in this nations history and then explain whether it conformed to this theory

What is the value of a share of stock : Joker stock has a sustainable growth rate of 10 percent, ROE of 19 percent, and dividends per share of $1.60. If the P/E ratio is 16.5, what is the value of a share of stock?

Sales grow before any new fixed assets are needed : Alter Bridge Mfg., Inc., is currently operating at only 94 percent of fixed asset capacity. Current sales are $500,000. How fast can sales grow before any new fixed assets are needed?

What is the yield-to-maturity of this bond : Duke Power has a 10 year, 5.5% coupon bond that is currently selling for $1,033.15. Assume that coupon payments are semi-annual. What is the yield-to-maturity of this bond?

Expect the value of your dividend check to be three years : Star Light & Power increases its dividend 4.1 percent per year every year. This utility is valued using a discount rate of 12 percent, and the stock currently sells for $41 per share. If you buy a share of stock today and hold on to it for at least t..

Using straight-line depreciation : Your Company is considering a new project that will require $830,000 of new equipment at the start of the project. The equipment will have a depreciable life of 6 years and will be depreciated to a book value of $164,000 using straight-line depreciat..

What will be the after-tax cash flow of this sale : Suppose you sell a fixed asset for $128,000 when it's book value is $161,000. If your company's marginal tax rate is 28%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)?

What will be the net cash flow for year : Your company has spent $320,000 on research to develop a new computer game. The firm is planning to spend $52,000 on a machine to produce the new game. Shipping and installation costs of the machine will be capitalized and depreciated; The firm has a..

What is the break-even value : 1) the automobile supply company has a small plant that produces speedometers exclusively. its annual fixed costs are $30,000 and its variable cost are $ 10/unit. it can sell a speedometer for $ 25. how many speedometers must the company sell to brea..

User Account

All Pages